Question

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the second-year depreciation using the straight-line method.

Option A: 19,200
Option B: 13,200
Option C: 9,000
Option D: 9,600

Answer 1

Correct Option is D) .The second-year depreciation using the straight-line method for the computer equipment is $9,600.

Step-by-step explanation:

The second-year depreciation using the straight-line method can be calculated by subtracting the estimated residual value from the original cost of the equipment and dividing the result by the estimated useful life.

The original cost of the equipment is $57,000 and the estimated residual value is $9,000. Therefore, the depreciable cost of the equipment is $57,000 - $9,000 = $48,000.

Since the estimated useful life is 5 years, the second-year depreciation can be calculated as $48,000 / 5 = $9,600.